Enforcement Directorate raids RJD MLA, others in Bihar cooperative bank case

New Delhi: Enforcement Directorate (ED) on Thursday carried out searches at 18 locations, including premises linked to RJD MLA and former Bihar minister Alok Kumar Mehta.

The searches were carried out in connection with its money laundering probe into an alleged funds embezzlement at a state cooperative bank, people in the know said. Searches were carried out in Bihar, West Bengal, UP and Delhi. Mehta is promoter of Bihar-based Vaishali Shahri Vikas Cooperative Bank and some other linked entities, they added.

The money laundering probe stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about ₹85 crore.


Sources said the alleged fraud was committed through nearly 400 fraudulent loan accounts and disbursal of funds based on fake/forged warehouse/LIC receipts.

ED has alleged that bank employees and other persons, who were the beneficiary, worked in connivance with Mehta. Sources added premises related to Mehta's alleged associates were also covered in the search operations.